European Council is formed by the heads of state or government of every EU country, the Commission President and the European Council President, who chairs the meetings. The EU’s High Representative for Foreign Affairs and Security Policy also takes part.

The meetings are essentially summits where EU leaders meet to decide on broad political priorities and major initiatives. Typically, there are around 4 meetings a year, chaired by a permanent president.

The role of the European Council is twofold – setting the EU's general political direction and priorities, and dealing with complex or sensitive issues that cannot be resolved at a lower level of intergovernmental cooperation.

Though influential in setting the EU political agenda, it has no powers to pass laws.

Herman Van Rompuy is the President of the European Council. His second term of office began on 1 June 2012 and runs until 30 November 2014.

The European Council decides by consensus, except if the Treaties provide otherwise. In some cases, it adopts decisions by unanimity or by qualified majority, depending on what the Treaty provides for.

Council of the EU

The Council of the European Union is also informally known as the EU Council, this is where national ministers from each EU country meet to adopt laws and coordinate policies. The Council of the EU:

Passes EU laws.

Coordinates the broad economic policies of EU member countries.

Signs agreements between the EU and other countries.

Approves the annual EU budget

Develops the EU's foreign and defence policies.

Coordinates cooperation between courts and police forces of member countries.

The Council signs agreements on behalf of the EU – on subjects as diverse as the environment, trade, development, textiles, fisheries, science, technology and transport.

There are no fixed members as such. At each Council meeting, each country sends the minister for the policy field being discussed – e.g. the environment minister for the meeting dealing with environmental matters. That meeting will then be known as the "Environment Council".

All other Council meetings are chaired by the relevant minister of the country holding the rotating EU presidency.

For 2013 the member States in charge of the presidency are Ireland (January-June 2013) and Lithuania (July-December).